The Victorian branch of the CFMEU has been placed under administration following allegations of criminal behaviour and links to bikie gangs within the union.
Union members held an emergency meeting on Monday following allegations that members of illegal motorcycle gangs were acting as CFMEU delegates and of links between construction projects and organised crime groups.
The union’s national secretary, Zach Smith, said the national office would assume senior executive powers and an independent process would be established to investigate criminal allegations.
“The CFMEU has zero tolerance for criminality and anyone found to have engaged in criminal conduct whilst representing the CFMEU will be identified and terminated,” Smith said.
‘The CFMEU has one purpose: to defend and promote the safety and conditions of workers.
‘The Victorian branch has been highly successful in achieving this goal, but the national executive also recognises that a number of recent allegations are serious and require an unprecedented response.’
Prime Minister Anthony Albanese welcomed the news.
“That’s a good next step, but we need further action and we need to make sure that that results in isolation and action in terms of the law but also action within the union,” he told ABC radio.
Allegations linking the CFMEU to organised crime have led to calls for an investigation
“I have a very clear message for the CFMEU: they have to improve their behaviour. I have zero tolerance for that.”
CFMEU Victorian branch boss John Setka resigned on Friday night, but not before describing the reports as “false accusations” and “malicious attacks”.
The prime minister said the allegations were a betrayal of union members.
“If violations of the law occur, they need to be pursued to the fullest extent of the law and people held accountable,” he said.
“I have contempt for someone like John Setka, he has no legitimate role in the trade union movement.”
Mr Smith said that while allegations of wrongdoing needed to be examined, union leaders did not need to be tarred with the same brush.
“Cancel culture will never be our culture,” he said.
‘Our union operates in a tough industry where people are seriously injured or killed every week and where unreliable developers and contractors are allowed to run rampant.
‘The national office will be uncompromising in cleaning up any irregularities we find because we know that blue-collar workers depend on our union being strong and effective.’
On Sunday, Industrial Relations Minister Tony Burke said all options should be on the table in terms of dealing with the union, including deregistration.
Shadow treasurer Angus Taylor said the government, as Labor, should stop accepting donations from the union, deregister the CFMEU and reinstate the Australian Building and Construction Commission, which it abolished in 2023.
“Actions speak louder than words,” he told Nine’s Today show.
“And the Labour Party has been very close to the CFMEU.”
The Business Council of Australia wants a “full, frank and independent” judicial inquiry into the union and says the CFMEU should be immediately banned from accepting government contracts.
“An investigation of this nature would have the power to compel documents and witnesses, which is critical if we are to truly get to the bottom of how union officials and criminal organisations have allegedly worked together to profit from government and taxpayer-funded projects,” said executive director Bran Black.
‘All Australians suffer when unions engage in this kind of so-called behaviour, dramatically increasing construction costs and making it much harder to buy a home when we are already in the midst of a cost of living crisis.’